Willis Aerospace Says Manufacturers Paying More Than Fair Share

Challenges Insurers Against Holding Line on 2009 Rate
Reductions

London, UK, May 26, 2009 — Aerospace product manufacturers are bearing a disproportionate share of aviation market
premium, considering the record profits insurers derive from the sector and its loss history compared with
the airline sector, according to a new report from Willis Aerospace, a division of Willis Group
Holdings (NYSE:WSH), the global insurance broker. In the report, the sixth annual Willis Aviation Products Market
Review, Willis challenges insurers for holding the line on further rate reductions for the sector in
2009.

Against a backdrop of record profits in 2008 — the seventh consecutive year of rising insurer profitability
in the sector, according to the Willis Manufacturer Index — many insurers are refusing to budge
on further rate reductions this year, after lowering premiums four percent last year. Willis argues against
that position, reminding insurers that the aerospace manufacturing sector accounted for 37 percent of total aviation
market premium in 2008, even though over the last decade, the sector was responsible for only
18 percent of claims, versus 82 percent for the airline sector.

Andre Clerc, Chairman, Willis Aerospace, said, “On behalf of our clients and all manufacturers worldwide, our report
serves to remind insurers of their previous decision to have different rating models for aerospace manufacturers
and airlines. Whilst we can all appreciate a change in insurers' reinsurance and capital acquisition costs
due to current economic trading conditions, manufacturers should not be considered in the same fashion as
airlines, particularly when in the last two years it has been the aerospace manufacturers' sector that
provided the greater share of profit/premium credit to the overall aviation market.”

The review states that the airline sector has been notably less profitable for insurers over the past
two years and that consequently premium/rate increases were applied from the fourth quarter of 2008. In
stark contrast, however, Willis notes that the aerospace manufacturers' sector continued to deliver growing profitability to
insurers, although the broker observed that some insurers started hardening their attitudes towards this sector in
the latter part of 2008.

Importantly, the report refers to the fact that at the end of 2002, insurers made a conscious
decision to review the aerospace manufacturer and airline sectors separately. The result of this decision saw
aerospace manufacturers' premiums rise for a further two years as airline premiums continued to decline.

Craig Davie, Willis Aerospace Practice Leader, said, “It seems to us that some insurers have forgotten this
decision and have combined their premium rating strategies for aerospace manufacturers together with that of the
airline sector.”

The incurred claims experience of the Willis Manufacturers Index, contained in the report, finds that:

Since 2004, 40 percent of incurred losses relate to hull damage or short tail losses.

Known losses
appear to have limited potential for major deterioration while the cumulative loss ratio is at its
lowest point for 15 years.

The credit balance, in favour of insurers, amounts to approximately US$2.5 billion.

Commenting on these findings, Davie said, “Are insurers recognising the reasonably mature and non-catastrophic claims environment and
most importantly, are they readjusting their actuarial rating and underwriting models accordingly?”

Willis Aerospace continues to be the only major aviation insurance broker with market-leading manufacturers' expertise that publishes
an annual Market Review dedicated to the Aviation Products sector. The division employs over 320 aerospace
Associates based in 22 offices servicing the requirements of aerospace companies around the world, including aerospace
risk management, leasing and financial consultants.

Willis Group Holdings Limited is a leading global insurance broker, developing and delivering professional insurance, reinsurance, risk
management, financial and human resource consulting and actuarial services to corporations, public entities and institutions around
the world. Willis has more than 400 offices in nearly 120 countries, with a global team
of approximately 20,000 Associates serving clients in some 190 countries. Additional information on Willis may be
found at www.willis.com.